Problem:
Sara Lee Corporation earned revenues of $17.7 billion during 20x1 and ended the year with net income of $2.3 billion. During 20x1, Sara Lee collected $18.0 billion from customers and paid cash for all of its expenses plus an additional $0.4 billion on 20x0 expenses left over from the preceding year. Answer these questions about Sara Lee's operating results, financial position, and cash flows during 20x1:
Required
1. How much were the company's total expenses? Show your work.
2. Identify all the items that Sara Lee pay for expenses in 20x1?
3. How much cash did Sara Lee pay for expenses in 20x1?
4. Sara Lee began 20x1 with receivables of $1.8 billion. What was the company's receivables balance at the end of 20x1? Identify the appropriate financial statement, and show how Sara Lee will report ending receivables in the 20x1 annual report.
5. Sara lee began 20x1 owing accounts payable and accrued expenses payable totaling $2.7 billion. How much in accounts payable and accrued expenses payable did the company owe at the end of the year? Identify the appropriate financial statement and show how Sara Lee will report these two items in its 20x1 annual report. (for this requirement combine accounts payable and accrued expenses payable into a single amount.)